Posted on May 12, 2010.
SMALL BUSINESS TIPS: Exports of British products made in the United States. Does anyone know the correct procedure? I just started a luxury small manufacturing domestic products, and I just had a few orders of the United States. I received payment via PayPal, but I need to do anything that the shipment of orders at the customer, for example import duty the United States or the tax?
Average price for each product is 2000 pounds.
It is a new company is not liable to VAT in the United Kingdom.
For most goods, it is quite a straightforward process for you. My company manufactures and exports to the United States.
The important thing is to get the goods shipped correctly.
If something small (say up to 10kg) from door to door, you must use a courier service such as TNT, UPS or Fedex. They can be very expensive, but if you are sending a batch, set up a corporate account with them for discounts. My company pays about £ 50 for a box of medium size weighs about 8 kg and about 35 pounds for a very small light box weighing 1-2 kg.
Check insurance - you may need to buy marine insurance or obtain increased assurance with your charger, since they normally provide for a relatively small amount, say, 200 pounds. It is worthwhile to pay more - we bought a machine from China and it has literally fallen from the truck on the way to the port, so fortunately it was insured properly.
If you send a big shipment, a pallet load, you must use a specialized transportation company. Sometimes, your email service such as UPS, etc. can do. Somebody needs to get goods through customs and a freight company to arrange this. Or you can arrange for the customer to do so. Ususally the transportation company has an office at the airport - you get a very good service and they will talk through all this. They are then let the experts guide you.
Then your documents. You must declare that the goods and their value are a few other things. How you do that is through a bill and you need to provide copies from April to June. You also need good delivery or packing slip. At the top of the paperwork issued by mail. They need a return address, shipping address and contact to the delivery address. Make sure everything is consistent - all to and from addresses are the same on all documents. It is illegal to lie about it - for example, give the wrong price of goods on the invoice to avoid paying taxes as long.
Where goods are supported by the courier or transport company, the person usually knows who is what they do (not always) can therefore advise you.
You are not normally liable for any special tax. The recipient pays tax on the basis of the rules of their country. When you sell products, it is advisable to quote or contract stage to say that you do not owe any tax. The tax is normally collected by the Bureau of Customs of the other countries by sending an invoice to the receiver. For example, if goods into the United Kingdom, you will receive an invoice for the VAT and other charges for import tax if applicable. Sometimes you have to pay this before your goods are cleared. The rules vary from one country to another.
You do not charge VAT when exporting goods.
The above is for the most normal goods. However, there are special rules that apply to certain goods. You should go to the Business Gateway website and click on link for international trade. The site is www.bgateway.com. You will also need to be in tune with the Incoterms - is to do with who is responsible for the goods to different parts of the journey. For example, you may be responsible for getting the goods ready and receiver organizing the expedition. Or you may be responsible for transporting the goods to the nearest port (or airport) to the receiver and they get it from there.
I think it covers. Thanks to Bu.